I just feel like the only reasonable answer to any tax question posed here is: “Tell your CPA what you want your business to look like this year and in 3 years. Do what he says. He has legal and fiduciary responsibility and is the one signing off on your taxes. Not us. We have no skin in the game.”
I could be wrong about that, but I feel like I’m more right about this answer than any other I’ve ever given. Lol.
I will se if she has EO coverage
When I started in finance I could only sell life insurance until I passed my securities test. I could only sell life insurance once I had E&O insurance. I’d fall out of my chair if anyone took what’s regarded as one of the top 3 hardest tests in finance and they weren’t required to have E&O.
And tea apparently
Got my P&C license with endorsement for 42 states when i worked for AllState.
We had coverage as a must.
But that was another life time
I’ve got this exact truck except its black.
Our first (and only) payroll checks 
(It will be ACH deposits from here on out)
Despite all my research, I was blindsided by the amount witheld for taxes. Cost us approximately 135% of our net. In other words, >25% tax, <75% take home. I was stuck on that 15.3% figure, without considering all the other taxes that have to be paid 
The real savings of incorporating will happen when we take our dividends. That will be around 18% tax, 82% net, if I understand correctly.
Taxes make me want to puke 
.
Well, gotta pay Caesar’s things to Caesar. I’m done with leaving him a tip, though 
On a side note, this arrangement of having the CPA’s payroll team take care of all the withholding is a great solution for anyone lacking the self control to not spend their tax money. It’s out of our hands now.
And even if you’ve got the self control, it’s one less thing to worry about.
I use Patriot Software. $30 a month and they take all taxes out of employees checks, direct deposit and pay the state taxes and federal.
All I do is punch the hours into the computer and hope there’s enough $$ in my acct to cover payroll lol
That’s a good price. Our CPA charges $42/month for their payroll service, for all the same features. By comparison, our bank offers a payroll service for $55/month, and I think quickbooks charges around the same for their full service payroll.
I think the few extra bucks is worth it, for using a local company who answers on the 2nd ring and can have a paper check ready in 5 minutes, lol. They initially printed these out with the wrong bank account number (nobody’s fault - we had given them our old account number before realizing we needed to open a new one for the corp.) They had new checks printed out in the time it took me to drive the 3 blocks from the bank.
Another thing I like about using our CPA’s office for this (and maybe other payroll providers will do this as well, idk), is we can tell them what we want our net salary to be for a particular pay period, and they’ll calculate all the taxes from there. So instead of giving them a gross amount (hours worked x gross hourly pay), the way most employees would see on their pay stub, followed by a lower net amount on the check, we can have a nice round figure that works to our budget. Great for an owner-operated corp.
What’s your bank charging you for?
Nothing. I was just pointing out the difference in rates. My bank offers a payroll service for $55/month. Similar to quickbooks. Sorry for being unclear
Ah I get it
Forgot to post an update on this. Our CPA informed us that we saved about $4k in taxes last year by incorporating. Could have saved a bit more if we had paid ourselves a smaller salary.
@Infinity rereading through this thread maybe I missed it, but what do you restructure from? I see you went to an S-Corp but did you come from a sole proprietorship or LLC previously?
We were a sole prop
If he was an llc he could have chosen taxation method…s corp partnership disregarded entity c corp…thats the cool thing with llc. Much less expensive than inc. And 100% flexibility about taxation.
I am not an expert on this by any means, but I think SEP IRA contributions are limited to the lesser of 25% of your salary or $58,000. So if you want to put $50k a year in it you’d need to have an income of $200,000 or more.
